Garmin Ltd. Fourth Quarter Earnings Sneak Peek

The Cheat Sheet

Garmin Ltd. will unveil its latest earnings on Wednesday, February 22, 2012. Garmin and its subsidiaries manufacture, market, and distribute Global Positioning System-enabled products and other related products.

Garmin Ltd. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 65 cents per share, a decline of 21.7% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 64 cents. Between one and three months ago, the average estimate was unchanged. It has risen during the last month. Analysts are projecting profit to rise by 14.5% compared to last year’s $2.42.

Last quarter, the company came in at profit of 77 cents per share against a mean estimate of net income of 50 cents per share, beating estimates after missing them in the previous quarter. In the second quarter, it missed forecasts by 12 cents.

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Wall St. Revenue Expectations: Analysts predict a decline of 8.3% in revenue from the year-earlier quarter to $768.1 million.

Analyst Ratings: Analysts seem relatively indifferent about Garmin with eight of 12 analysts surveyed maintaining a hold rating.

A Look Back: In the third quarter, profit fell 46.2% to $150.4 million (77 cents a share) from $279.6 million ($1.43 a share) the year earlier, but exceeded analyst expectations. Revenue fell 3.7% to $667 million from $692.4 million.

Key Stats:

The company has seen net income fall in each of the last two quarters. Net income dropped 18.8% in the second quarter.

Revenue has dropped in the last two quarters. In the second quarter, the figure fell 7.5%.

Stock Price Performance: Between November 18, 2011 and February 16, 2012, the stock price rose $9.42 (27.1%), from $34.76 to $44.18. The stock price saw one of its best stretches over the last year between December 6, 2011 and December 13, 2011, when shares rose for six straight days, increasing 4.7% (+$1.73) over that span. It saw one of its worst periods between November 15, 2011 and November 25, 2011 when shares fell for eight straight days, dropping 3.1% (-$1.10) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at

To contact the editor responsible for this story: Damien Hoffman at

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